Insurance Companies may take Rs 100-crore hit from Maharashtra hailstorms: AIC

MUMBAI: State-run Agriculture Insurance Company of India (AIC) today said the general insurers may see claims ranging from Rs 85 crore to Rs 100 crore arising from the massive crop damages, spanning over 8 lakh hectares, following hailstorms in Maharashtra earlier this month.

"As per our initial estimates, claims may be to the tune of Rs 85-100 crore from this event," AIC general manager Rajeev Chaudhary told PTI.

The public sector insurer, which specialises in providing weather and crop insurance, has one of the largest presence in this region of the Western state.

As per the company, 10 crops are insured of which three are cereals and rest are horticultural crops. While cereals include wheat, jowar and Bengal gram; horticultural crops include oranges, grapes, guavas, pomegranates and cashews among others.

"Covers for horticultural crops like cashew, guava and grapes are covered under the crop insurance scheme till February 15. So, claims from these crops will not be much. We are now assessing the damage for the rest of the crops," Chaudhary said.

Interestingly, while farmers from all states have to compulsorily take a crop insurance while taking a crop loan from banks, it is voluntary in Maharashtra.

Talking on the premium collected from Maharashtra per annum by the general insurance industry from weather and crop insurance related segments, Chaudhary said the total premium collection is around Rs 73 crore in these segments.

It is to be noted that while 20 districts in Maharashtra are covered by AIC, six districts are with HDFC Ergo and two districts are with IFFCO Tokio among others.

These companies could not be immediately contacted for comments.